Suzlon Rumored in Talks with Sun Pharma
Published By : 11 Feb 2015 | Published By : QYRESEARCH
A large number of stocks collapsed on Monday, while Suzlon shares, which have been fluctuating dramatically for a few years, rose 9 per cent. The stocks grew during intraday on the NSE, and closed 5.4 per cent higher than the closing done on the previous day. The stocks gained another 1.1 per cent on Tuesday.
The financials and the operations of Suzlon are not sufficient to explain the company’s stock movements, analysts explain. According to the experts, Suzlon has reported losses for more than three years. The company has lost its leading position in the wind energy sector to Gamesa, the Spanish energy giant. They even go on to say that it is very unlikely for Suzlon to become a profitable firm in the 2016 fiscal year.
The analysts said that the only reason Suzlon could create such an interest for investors in their stock is the buzz around a speculated sale of stakes to the promoters and relatives of Sun Pharmaceutical.
Two analysts have said that the investors would add Rs 2,000 crore into the funds of Suzlon Energy and its currently unlisted wind farm business. According to the rumors, the investors would get 24 per cent of the stake in the listed company for Rs 1,600 crore. The remainder sum of Rs 400 crore would be invested for a 50 per cent stake in their wind farm business.
There would be a preferential allotment of shares through which the transactions can take place. A spokesperson from Suzlon Energy said that as a policy, there will be no comments on the market speculations.
The Sun Pharma group refused to comment of the process either.